Trend

Pivot Line

Edited by GANGCO STUDIO · Updated

Contents Pivot Line
  1. MACD
  2. Ichimoku Cloud
  3. Pivot Line
  4. DMI
  5. Parabolic SAR
  6. Aroon
  7. Supertrend
  8. Exponential Moving Average
  9. MA Golden Cross
  10. MA Dead Cross
  11. ADX
  12. RSI
  13. Stochastic
  14. SONAR
  15. TRIX
  16. CCI
  17. ROC
  18. Disparity Index
  19. Psychological Line
  20. Williams %R
  21. AB Ratio
  22. Ultimate Oscillator
  23. Volume Profile
  24. OBV
  25. MFI
  26. Volume Oscillator
  27. Volume Ratio
  28. AD Line
  29. EOM
  30. PVT
  31. CMF
  32. VWAP
  33. Force Index
  34. Bollinger Bands
  35. ATR
  36. Envelope
  37. Keltner Channels
  38. Donchian Channel
  39. Standard Deviation
  40. Chaikin Volatility
  41. Three White Soldiers
  42. Three Black Crows
  43. Morning Star
  44. Evening Star
  45. Hammer
  46. Inverted Hammer
  47. Hanging Man
  48. Shooting Star
  49. Doji
  50. Bullish Marubozu
  51. Bearish Marubozu
  52. Bullish Engulfing
  53. Bearish Engulfing
  54. Piercing Line
  55. Dark Cloud Cover
  56. Bullish Harami
  57. Bearish Harami
  58. Elder-Ray Index
  59. Coppock Curve

An indicator that uses the previous candle’s high, low and close to set five reference lines (Pivot, R1, R2, S1, S2) for the current candle in advance.

Weapon tier
Elite
Slots used
On chart 5/6

Concept

Based on how far the previous candle moved, Pivot Line draws five lines in advance at the levels where the price is likely to stall or turn back during the current candle.

The middle line is Pivot, the ones above it are R1 and R2 (resistance), and the ones below are S1 and S2 (support). Each candle in this game is one day, so these are “today’s lines set from yesterday’s candle”. They are recalculated every candle and join up like a staircase.

  • Pivot
  • R1
  • S1
  • R2
  • S2

Charts by TradingView Lightweight Charts™

40 candles with the five Pivot Line lines and volume. ↓ marks candles whose high touched R1 and that closed below it, and ↑ marks candles whose low touched S1 and that closed above it. The first ↓ is on candle 17. Keyboard: ←/→ to move, +/− to zoom, 0 to see the whole chart.

↑ and ↓ are shown only on candles that touched a line and were pushed back, and whose close three candles later moved that way (lower for ↓, higher for ↑). Drag the chart sideways with a finger or the mouse to move it, and pinch with two fingers to zoom in. With a keyboard, click the chart, then use ←/→ to move and +/− to zoom.

How it is calculated

Pivot = (previous high + previous low + previous close) ÷ 3

R1 = 2 × Pivot − previous low, S1 = 2 × Pivot − previous high

R2 = Pivot + (previous high − previous low), S2 = Pivot − (previous high − previous low)

All five lines use only the single previous candle. That is why there is no period to change.

Parameters

There are no parameters to change. In the game’s weapon screen it is equipped without options.

Trading ideas

When the price touches R1 and is pushed back down, it is commonly read as “meeting resistance”; when it touches S1 and bounces up, as “finding support”. The chart on this page shows those scenes.

Some read the day as strong when the price moves above Pivot, and as weak when it moves below.

Some see a close above R1 as opening the way to the next line (R2). It is not a sure signal.

Common traps

  • It was originally a tool used mostly for short trades within a single day. In a daily-candle game each line is “tested” by only one candle, so do not trust the reactions too much.
  • The lines change every candle. Do not read “support broke” as a long trend. A new line is drawn on the next candle.
  • With five lines drawn close together, almost every candle seems to touch one of them. Look at where the candle closed rather than where it touched.

In the game

  • “Pivot Line” is an “Elite” weapon and uses 5 “On chart” lines (limit 6).
  • It has no settings to change, so on the “Weapons” screen you equip it as it is.
  • Together with the two Simple Moving Average lines in the starting setup (2 lines), it comes to 7 lines, which is over the limit. Remove Simple Moving Average before equipping it.
  • Ichimoku Cloud also uses 5 lines, so together the two go over the limit and cannot be equipped at the same time.

Related indicators and lessons

  • MACD — A trend indicator that uses the gap between a fast and a slow exponential moving average to show whether the two averages are pulling apart or closing in.
  • Ichimoku Cloud — A trend indicator that uses five lines and a cloud to show at a glance where the price sits within its past price range.
  • DMI — A trend indicator that shows, as two lines side by side, the force pushing highs higher (+DI) and the force pushing lows lower (−DI).
  • Parabolic SAR — An indicator that uses a single trailing “stop line” to show whether the price is in a rising or a falling stretch, and when it flipped.
  • Aroon — An indicator that judges whether a new trend has started by how long ago the recent high and low were made.
  • Supertrend — A trend indicator that keeps a single line above or below the price and uses its color and position to show whether the price is in an uptrend or a downtrend.
  • Exponential Moving Average — A line that averages recent closes with more weight on the newest ones, so it follows price changes faster than the simple moving average.
  • MA Golden Cross — An event marker that puts a vertical line on the candle where the short moving average crosses up through the long one.
  • MA Dead Cross — An event marker that puts a vertical line on the candle where the short moving average crosses down through the long one.
  • ADX — An indicator that shows, as a number from 0 to 100, how strongly the price is moving in one direction, whether up or down.
  • 2. Trends and sideways moves